Texas Retail Chain CEO Announces 10% Pay Cut: Is It Sufficient to Address Concerns?

Ash Jurberg

The CEO of Container Store has taken a temporary 10% pay cut

Like many retail chains, the Container Store has struggled of late. Sales are down by 21.1% in the three months ended July 1.

In May, the Texas based business cut 15% of jobs in its Support Center in Coppell and cut retail store staffing by approximately 3%.

To help offset rising costs and employee pay increases, the Container Store CEO Satish Malhotra is taking a voluntary 10% pay cut for six months.

Malhotra's base salary has decreased from $925,000 to $832,000 for six months, effective October 1. His pay will be increased back to its current level on April 1. Last year, the CEO's total compensation was $2.57 million.

Last year, the Container Store lost $158.86 million compared to a profit of $81.72 million the previous year.

The headwinds are real. CEO'sWe definitely are seeing our customer contend with higher inflation, interest rates, and just a lot of uncertainty, and because of that, then we see a natural pullback in discretionary spending.” Container Store CEO Satish Malhotra

Your thoughts

Do you think it was a good move by Malhotra to reduce his salary? Do you believe CEOs are overpaid? Should salaries be reduced so retail workers can be paid more?

Please leave your thoughts in the comments section below and share this article with others so more people can join the discussion.

To keep up with all the latest business and retail developments in Texas and the United States, please click on the follow button!

This is original content from NewsBreak’s Creator Program. Join today to publish and share your own content.

Comments / 10

Published by

Check out my latest bestselling book

San Antonio, TX

More from Ash Jurberg

Comments / 0